gene arensberg comments on the silver market:

Exactly two U.S. banks continued to keep their thumb on the COMEX silver market as of October 7 when the silver price had already declined from $19.00 to $11.00 and change in the face of severe physical silver shortages of metal on the street. As of October 7 the two largest commercial banks still held a scandalous 23,308 net short silver contracts when the entire commercial net short position was 29,829 contracts. That’s right, two banks still dominated the small silver futures market with over 78% of all the commercial net short positioning.

It is not even fair to call the immoral bank’s position a “net short” position. The two U.S. banks were so certain of their dominance, they were so certain they could drive the futures price of silver lower still, that they did not hold a single long contract for silver on October 7. That, my friends, is the smoking gun and all the DNA we need to see.

Who is ever so sure of such a large position? Only those who can control the ball game.

No wonder that metal is now flowing out of the COMEX and into the physical market. Over 2 million ounces of silver have fled the vaults of the COMEX in just the last five trading days alone. As we will see a little later, the big U.S. banks have now apparently covered or offset some part, but not yet all of that overwhelming trading advantage over the rest of us.

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